Instruction[1]. The financing process involves several steps leading up to securing a loan and closing the transaction. Once the application is made the loan goes into "underwriting". During this stage the lender is making a decision on the creditworthiness of the buyer. This is one of the areas in which discrimination is allowed in real estate! Discrimination based on financial factors, such as ability to pay, income and FICA credit score. Would it be a good thing for a buyer to have a Pre-Approval? Why would a buyer go to the trouble of a Pre-Approval? How would the Seller and the Buyer benefit, if at all from a Pre-Approval? [2]. During the qualifying process the loan is "underwritten". The chapter lessons discusses the importance of determining whether or not the buyer and the property both qualify for the loan. If the buyer has adequate financial resources such as income, net worth, favorable credit history, stability of income to qualify for the loan why would the lender be concerned about the property? Under what scenario would the condition of the property be an issue? What if the lender felt that the property did not "qualify" for the loan, even though the borrower had adequate financial resources in the form of credit history, income etc., what alternative would the borrower have if that were the case and a traditional loan was not available? How could the borrower secure funds to buy such a property?